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Activity in Britain’s construction sector fell in August, prompting economists to speculate that the industry would act as a drag on growth.

Construction output fell by 0.9 per cent in August, the Office for National Statistics said yesterday. In the three months to August, activity was down 11.9 per cent, compared with the same period a year earlier.

Howard Archer, chief UK and European economist at IHS Global Insight, said this meant construction output was “essentially flat” in the third quarter. “This would be very disappointing as, while it is evident that the sector faces serious headwinds, the hope had